Remarks as Prepared for Delivery: Agriculture Secretary Tom Vilsack Before the Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies

Remarks as Prepared for Delivery: Agriculture Secretary Tom Vilsack Before the Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies
WASHINGTON, March 10, 2011- Agriculture Secretary Tom Vilsack today spoke before the Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies:
“As we meet, Congress is in the midst of debating a continuing resolution for 2011. As the President has made clear, the administration believes that the final product should embrace the principles both of shared sacrifice and shared opportunity, to do so carefully, and in a way that reflects our values.
“To prepare for this continuing resolution, I have already instructed my leadership team at USDA to prepare for a host of possibilities when it comes to future resources – and to know exactly what resources are available to them today. But it is also my hope that any funding proposals should provide USDA the time to appropriately manage any cuts so that we continue to be as effective as possible in serving our customers, the American people.
“As the continuing resolution has been debated, the Administration has demonstrated its commitment to reducing the deficit – taking a very close look at our budget to find spending cuts. USDA already showed our commitment to deficit reduction by providing $4 billion last year to help pay down the debt in negotiating an agreement with crop insurance companies.
“In total, the 2012 budget we are proposing before this subcommittee is $130 billion, a reduction of $3 billion below the 2011 annualized continuing resolution. For discretionary programs, our budget proposes $18.8 billion, a reduction of $1.3 billion below the 2011 level.
“In this budget, we are cutting programs not because we want to, but because we have to. American families have been forced to tighten their belts and government must do the same. We are promoting good government and streamlining agency operations in a host of programs. We are proposing to reduce or terminate selected programs. And, the budget fulfills the President’s pledge to completely eliminate earmarks. It looks to properly manage deficit reduction, while preserving the values that matter to Americans. We are working to do it responsibly by focusing limited resources on programs where we can achieve the greatest impact.
“We are also making investments to lay a foundation for a successful future for agriculture and for the American people. This budget includes targeted investments and program increases in key areas to support job creation and economic competitiveness. We will invest in research to spur innovation, promote exports, support renewable energy and conservation, and enhance critical infrastructure in rural communities.
“In rural America, we must continue to promote job growth as the economy continues to recover. This budget will better target our investments to high growth rural businesses, because the most important thing we can do to support job creation and thriving rural economies is to provide credit to entrepreneurs and communities. To help ensure rural communities have the basic infrastructure they need – and at no cost to the taxpayer – we are more than tripling our direct loan support to help communities build and repair hundreds of hospitals, libraries, and police and fire stations. We will also make critical investments in local and regional food systems, as they not only create jobs but also enhance income opportunities for producers.
“A nation-wide renewable energy industry will also help create the jobs of the future in rural America, while reducing our dependence on foreign oil, and risks to our environment. Our budget reflects our commitment to promoting the domestic production of renewable energy through continued investments in renewable energy programs and by focusing our loans to rural electric cooperatives on the development of clean burning low emission fossil fuel facilities and renewable energy deployment.
“Today, record agricultural exports are helping grow our economy – every billion dollars in increased exports supports 8,400 American jobs – and our budget includes resources directed at continuing that momentum.
“As the President has indicated, we have to out-innovate, out-educate, and out-build, our global competitors. USDA's budget reflects a commitment to winning the future, to long-term growth and stability of our agricultural economy as well as our rural economy. Scientific research is essential for achieving these goals. To promote American innovation, new discoveries, and new industries, we continue to target and focus additional research dollars in key areas, like biofuel feedstocks, livestock and crop production and protection, ecosystem market foundations, and biotechnology.
“In this recovering economy, there are still many families in need. Our budget reflects the reality, fully funding the expected requirements for the Department's three major nutrition assistance programs – WIC, the National School Lunch Program, and SNAP. We also continue a strong but focused commitment on rural housing.
“Regardless of economic conditions, some things remain constant, like the need to ensure the safety of the American food supply. The budget focuses on two areas for improving food safety: the development of a public health information system that allows us to prevent problems, and a uniform incident command structure to allow us to respond more effectively to foodborne illness outbreaks that might be multiagency in scope.
“The agricultural economy is relatively strong and we anticipate that there will be very little need for counter-cyclical or loan deficiency programs.
“Unfortunately, not every segment of agriculture is experiencing good times. We are keeping an eye on livestock, dairy producers and specialty crop producers. We also want to ensure that intermediate-sized or medium-sized operations are succeeding, and to create opportunities for off-farm income that sustain many of these producers.
“To maintain a strong safety net for American agriculture, we fund our guaranteed and direct loan programs for ownership and operating loans, expand the crop insurance program, and adequately fund our disaster programs under the 2008 Farm Bill. And building on the crop insurance savings that we realized last year – which carry over into this year – new changes in catastrophic policies in terms of the premium assistance will net additional savings. Also, we again propose the direct payment reforms that would impact only about 2 percent of producers, and save $2.5 billion over 10 years.
“Overall, we propose cutting our Rural Development budget by $535 million, reflecting targeted reductions and eliminations of programs. We are proposing some tailoring of our housing programs, but still support a strong Guaranteed Single Family Loan Program. Our budget also recognizes that successful and effective rural economic development will occur on a regional basis. It proposes working through existing programs to fund regional pilot projects, strategic planning activities, and other investments to improve rural economies.
“There are some programs we propose eliminating entirely. The Guaranteed Operating Loan with Interest Assistance Program is relatively small and we think we can handle the operating loan needs of farmers without necessarily providing interest assistance. And a number of programs, like the Watershed and Flood Prevention Operations Program and the Watershed Rehabilitation Program, are eliminated simply because they are the responsibilities of other jurisdictions and are not large enough to really make a significant impact.
“In this budget, we remain committed to conservation and are proposing selected increases to emphasize targeted watershed-scale efforts and to improve the efficiency of our conservation program delivery. Overall, we anticipate a record number of acres enrolled in a variety of Farm Bill conservation programs.
“Inherent in this budget are also workforce reductions and administrative efficiencies that will allow us to more effectively manage our business through process improvement, the better use of IT, as well as taking a look at attrition, temporary workforces and the like, and ways of better managing our resources. And while many of our payment programs are operating at historic levels of accuracy, this budget continues to support efforts to reduce improper payments. We are also seeking to recover the cost of operating a number of programs by collecting user fees from those that directly benefit from the services being provided.
“Budgets are always difficult. They involve a variety of difficult choices and tradeoffs. This budget addresses the realities and critical challenges facing the Nation in a balanced way, and includes the targeted investments we need to make to support job growth as the economy recovers. I will be happy to answer your questions.”

Opening Statement of Chairman Frank D. Lucas Committee on Agriculture Public hearing to review the impact of EPA regulations on agriculture

Opening Statement of Chairman Frank D. Lucas
Committee on Agriculture
Public hearing to review the impact of EPA regulations on agriculture
March 10, 2011
As prepared for delivery
I would like to thank Administrator Jackson for being here today. I know there are quite a few committees in Congress that have invited you to appear before them and I expect your popularity as a witness will not diminish anytime soon.
There is a reason the top issue for nearly every member of the Agriculture Committee is related to the regulatory agenda of the Environmental Protection Agency (EPA). The reason is simple: many members of this committee believe over the past two years the EPA has pursued an agenda seemingly absent of consideration for the consequences it would have on rural America and production agriculture. The agency is creating regulations and policies that are burdensome, overreaching, and that negatively affect jobs and rural economies.
Just a few examples:
• EPA’s proposed zero tolerance standard for pesticide spray drift;
• Initiating action to stiffen the current regulatory standard on farm dust, which would make tilling a field, operating a feedlot, or driving a farm vehicle nearly impossible; and
• An unprecedented, re-re-evaluation of the popular weed control product atrazine. The EPA in 2006 completed a 12-year review involving 6,000 studies and 80,000 public comments, yet one of the first orders of business of the Obama administration was to start over after an article appeared in The New York Times.
In many instances, the agency is ignoring Congressional intent and looks to be bullying Congress. Instead of simply administering the law, EPA challenges Congress to pass legislation that gives it more authority. And, if Congress doesn’t act, it will regulate anyway.
Farmers, ranchers, and foresters alike take great pride in their stewardship of the land. When a family’s livelihood depends on caring for natural resources, there is an undeniable economic incentive to adopt practices that enhance long term viability. While it may be popular among urbanites and suburbanites to blame farmers and ranchers for environmental concerns, I think that you can acknowledge that nobody cares more for the environment than those who derive their livelihoods from it.
Rural America’s economy is dependant on agriculture. EPA’s regulatory approach has unjustifiably increased the cost of doing business for America’s farmers and ranchers. If EPA continues down this path, the only choice for many farmers and ranchers will be to stop farming altogether.
While there are many government regulations that are seemingly good for the country, those regulations must be developed in a manner that is mindful of science and the economic consequences. There has been some recognition of this phenomenon as President Obama recently issued an executive order insuring that all regulations should have public participation, be based on science, and not prohibit growth, competitiveness and job creation. I look forward to finding out how the many recent EPA actions meet these criteria.
On a more positive note, I would like to take this time to acknowledge that there are recent examples where the EPA and this committee have been able to work cooperatively in an effort to remove unnecessary regulatory burdens. In particular, I would like to commend you for the technical assistance you have provided this committee in our efforts to clarify that the regulatory authority for pesticide applications in or near the waters of the United States falls under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and not the Clean Water Act (CWA).
I would also like to call your attention to our shared concerns regarding the seemingly dysfunctional consultation process for pesticides under the Endangered Species Act. This is an issue of great concern to the committee and we would hope to be able to work cooperatively with the EPA to address it.
I anticipate that nearly every member will wish to engage you in a discussion of specific areas of concern. It is my hope that this hearing will serve to open the door to a more cooperative working relationship with EPA generally and with you specifically.
I would like to end this opening statement with one last perception. Farmers and ranchers believe your agency is attacking them. They believe little credit is given to them for all the voluntary conservation activities that they have been engaged in for years. This committee is going to be an advocate for those farmers and I will tell you the committee will look at every proposed rule from your agency and ask three questions.
• Is the EPA following the law?
• Are you making regulatory decisions based on sound science and data?
• And are you conducting adequate cost-benefit analyses?
I thank you again for being here and look forward to the dialogue that develops today and in the future.

The Food Institute Announces April 2011 Webinar Schedule

The Food Institute Announces April 2011 Webinar Schedule

Next month, The Food Institute will host two informative webinars designed to address key issues impacting the food business. Each webinar is one hour in length and will offer those in attendance up-to-the-minute information, followed by a question & answer session.

Join us on Apr. 6th as we explore the role of Shopper Insights within the food industry. Shopper Insights have become a "must-have" decision-making tool for category managers, brand and retail marketers and merchandisers. Anyone intent on intensifying their efforts via more sophisticated segmentation channels and tighter collaboration with trade partners will benefit from the in-depth analysis of this market research study which will be shared with all registered attendees. For further information, or to register for this unique event, please visit http://www.foodinstitute.com/consumerinsights.cfm

And, on Apr. 12th, The Food Institute will examine Merger and Acquisition activity within the food sector. Two experts in the field will share their thoughts on past activity and offer strategies for the future. This webinar will explore key factors, which must be considered when determining whether a company is potentially appealing to buy, or sell. Analysis on expanding through acquisition, as well as economizing operations through consolidation, will be discussed. A legal expert will explain how the government - specifically the Justice Department and Federal Trade Commission - evaluates each potential union and why, they may or may not be considered favorably. As an added bonus, those registered for this event will have the opportunity to purchase an electronic version of the "just-published" Food Business Mergers and Acquisitions book for a discounted price! Registration and additional information for this webinar can be found at http://www.foodinstitute.com/mergers2011.cfm